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Profit & Loss Statement Loans in Rosemead
Rosemead's self-employed buyers face a predictable problem: strong earnings that don't show up on tax returns. Business owners write off expenses that tank their taxable income but keep cash flow healthy.
P&L loans solve this by using a CPA-prepared profit and loss statement instead of tax returns. Your actual business income matters more than what you reported to the IRS.
Most lenders want 12-24 months of business ownership documented. You need a CPA to prepare your P&L statement — self-prepared versions don't qualify.
Credit minimums typically sit at 620-680 depending on the lender. Down payments start at 15% for primary residences and 20-25% for investment properties in Los Angeles County.
About 30-40 non-QM lenders offer P&L programs through broker channels. Each one sets different requirements for CPA credentials, business structure, and income calculation methods.
Some lenders average two years of P&L income. Others use the most recent 12 months if your business shows growth. Rates vary by borrower profile and market conditions, typically running 1-2 points above conventional rates.
The biggest mistake is waiting until you need financing to get your P&L prepared. Schedule this with your CPA quarterly so you have current statements ready when rates drop or you find a property.
I see deals fall apart when borrowers use unlicensed bookkeepers instead of CPAs. Lenders verify CPA licenses directly — cutting corners here kills your application before underwriting even starts.
Bank statement loans pull from 12-24 months of deposits. P&L loans use CPA-prepared financials. Bank statements work better if your business runs through one checking account consistently.
P&L loans make sense when you have multiple accounts, merchant processors, or complex business structures. They also work if you've been reinvesting profits rather than taking regular distributions.
Rosemead sits in the San Gabriel Valley where small business ownership runs high. Restaurants, retail, and professional services dominate — all businesses that generate strong cash flow but aggressive write-offs.
Los Angeles County property values push many borrowers into loan amounts where P&L documentation becomes essential. You can't buy much here on stated income alone anymore.
No. Lenders require licensed CPAs and verify credentials directly. Unlicensed bookkeepers kill your application immediately.
Most lenders want 12-24 months of continuous operation. Some accept newer businesses with larger down payments.
Usually no. The P&L replaces tax returns for income verification, though lenders may review them for other risk factors.
Lenders average your income over 12-24 months. Seasonal businesses can qualify if the annual average supports the payment.
No. Lenders use historical P&L data only, not projections or pro forma statements.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.